What Is Purchase Order Financing?
Purchase order financing (P.O. financing) allows you to access funds upfront by leveraging your pending purchase orders. Rather than struggling with cash flow constraints, purchase order financing empowers you to pay suppliers, fulfill orders, and seize new opportunities. With the support of a financing company like ei Funding, you can secure the capital needed to fulfill customer orders, pay suppliers and expand your business operations.
While purchase order financing imposes some limitations compared to basic invoice factoring, it specifically caters to financing purchases necessary for meeting your customer’s order requirements. The advantage, though, is that P.O. financing is not a loan, eliminating concerns about lengthy application processes and providing a streamlined financing option.
For wholesalers, manufacturers and similar businesses — particularly those with seasonal ups and downs — adding on P.O. financing to your invoice factoring contract with ei Funding can be an excellent choice. With purchase order financing, you can say goodbye to cash flow constraints and focus on driving your business forward.
Benefits of ei Funding’s
Purchase Order Financing
The benefits of utilizing ei Funding’s add-on purchase order financing service at your small or medium-sized business include:
Fulfilling Large Orders
Easily accept and fulfill larger customer orders that may need more financial capacity to complete.
Improved Cash Flow
Get the necessary funds to pay suppliers and cover production costs by ensuring smooth operations and preventing cash flow gaps that could hurt your business.
No Equity Dilution
Access funding without diluting your equity — retain control and ownership of your business while still having access to the funds you need.
Flexible Financing
Tailor the financing to your specific needs — funding is typically based on the value of the purchase order, allowing you to access a percentage of the order’s value.
Improving Supplier Relationships
Creating better relationships with suppliers can lead to better terms, discounts and more, which benefit your business over the long-term.
Who Can Benefit from Purchase Order Financing?
P.O. financing is ideal for businesses that face cash flow constraints, lack sufficient working capital and receive large or numerous purchase orders. ei Funding’s invoice factoring and purchase order financing services empower businesses across a wide range of industries to fulfill customer orders, expand operations and seize growth opportunities.
- Telecommunications
- Healthcare
- Construction and Building
- Leisure and Hospitality
- Food and Beverage
- Manufacturing
- Agriculture
- Transportation
- Warehousing and Storage
“I have no words to describe how much he’s helped me and how he’s helping my business grow. If it wasn’t for Ernane, I’m not sure where I’d be right now with my business.”
James Quiles
Owner, A&J Telecommunications, LLC
Why Choose ei Funding?
At ei Funding, we continuously strive to enhance our services and support your growth journey. We offer purchase order financing as an add-on service exclusive to our invoice factoring clients as a way to accelerate your scaling efforts.
We’re committed to equipping you with comprehensive financial advisory services, managing debt, ensuring a healthy cash flow and facilitating equipment acquisition, all aimed at fostering your steady and profitable business growth.
Client Testimonials
Hear From Our Satisfied Customers
Our experience with ei Funding has been outstanding.
The professionalism and expertise offered by their team, especially Ernane, have been invaluable. Ernane’s warm, kind, and understanding demeanor, coupled with his deep business acumen, has made our experience not just beneficial, but also enjoyable.
Darron Burke
Burke Brands LLC
I would not consider any other factoring firm to handle my business.
Ernane is a very valuable asset to any organization and is a key component and partner in my company’s success. He has always been very responsive, from day one. He treats me as if my business and success were his top priorities. No matter the size of the invoice, he promptly gets them turned around.
Bobby Morrow
ROTCA Services, Inc
We were able to establish a rapid and ready turnaround
Before we started working with Ernane, it was horrible. It was hard to get invoices on time and correctly and there was just no feedback from our bigger clients.
Once we started working with him, we were able to establish a rapid and ready turnaround. I had the funds available when I needed it and a faster turnaround in payment to our contractors.
Manny Ramirez
R&R Texram LLC
If I ever need a loan, I will think of ei Funding first.
Working for some time now with Mr. Ernane has made me feel secure. He always answers my questions and answers the phone himself, and he is always a very honest and trustworthy person.
Oscar Arizmendi
Next Underground
I would wholeheartedly recommend ei Funding to others.
Their ability to understand and meet business needs, combined with their professional and personable approach, makes them an ideal partner for any business seeking financial stability and growth.
Darron Burke
Burke Brands LLC
This is one of the best funding companies
If we didn’t go through Ernane, we would have had to wait 30 days before our first check came. After we started working with him, we were able to pay our employees on a regular basis. Otherwise, we would have had to have them wait.
Sylvia Troyer
Office Manager, Blueintegration, LLC
Ernane has helped me every step of the way with capital for my business!
When I first started working with Ernane, I had the concept for my business and a really strong pipeline, but I was in a really delicate balancing act between accounts payable and accounts receivable, operations costs and cash flow. He’s just someone I want to do business with.
Cesar Hernandez
Managing Director, Omni Public
I have no words to describe how much he’s helped me and how he’s helping my business grow
If it wasn’t for Ernane, I’m not sure where I’d be right now with my business. He’s on top of everything. I can hire more technicians now and I’ve grown the business by about 20 percent.
James Quiles
Owner, A&J Telecommunications, LLC
It’s been a real game-changer
We’ve worked with Ernane since last Spring. He’s helped us immensely as far as our cash flow. It’s been a real game-changer, honestly. He’s been keeping things going for us. I wish we had known about Ernane sooner in our business cycle, it would have been really helpful.
Tarek Kanaan
Unity Vibrations Kombucha
Frequently Asked Questions
Purchase Order Financing
Purchase order financing provides businesses with additional funds by leveraging purchase orders to secure financing, enabling them to accept larger orders, maintain cash flow and fuel business growth.
Your business can benefit from purchase order financing in several ways:
- Enables you to fulfill large orders
- Maintain and increase cash flow
- Avoid equity dilution
- Access flexible financing
- Improve supplier relationships
- Potential cost savings
- And more!
There are a number of factors that can help you determine whether or not P.O. financing is a good solution for your business:
- Need for Working Capital: If your business faces cash flow constraints or lacks sufficient funds to fulfill customer orders, purchase order financing can provide the necessary working capital to cover supplier costs and meet demand.
- Order Volume and Size: Purchase order financing is particularly beneficial for businesses that receive large or numerous orders.
- Profit Margins: Purchase order financing fees and interest rates can impact your profitability. It’s essential to assess whether the potential benefits of fulfilling the orders outweigh the financing costs.
- Creditworthiness of Customers: Purchase order financing often relies on the creditworthiness of your customers.
- Supplier Relationships: Purchase order financing requires reliable suppliers who can fulfill orders promptly and deliver the required goods or services.
- Business Stage and Growth Plans: Purchase order financing can be especially valuable for startups and growing companies aiming to seize opportunities and expand their market presence.
It’s important to conduct a thorough assessment of your specific business situation and consult with a reputable lender who can provide personalized guidance.
No. ei Funding only offers purchase order financing as an add-on service for our invoice factoring customers.
